2 ABOUT SHEMAROO Founded in 1962 as a book circulating library, - PowerPoint PPT Presentation

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ABOUT SHEMAROO • Founded in 1962 as a book circulating library, today Shemaroo is a filmed entertainment content house headquartered out of Mumbai and employs over 500 people. • The Company is one of the largest independent content aggregators with a library of more than 3,400 titles, which it distributes across various existing and emerging media platforms. • Identifying that movies have the longest shelf life for television and other media content, Shemaroo pioneered the movie library syndication business by acquiring movie titles from producers and distributing it to broadcasters and other media platforms. • Shemaroo has grown multifold over the years by developing excellent relationships with multiple players in the media industry value chain, thereby becoming one of the largest organized players in a historically fragmented industry. FY16 Revenue Distribution (INR Mn) Total Revenue (INR Mn) and EBIDTA % 3

MILESTONES 1962-2000 2000-2005 2006-2011 2012-2016 2001 - Digital Post production 1962 - Started book 2008 - Started content 2012 – Completed 50 years started circulating library in Mumbai aggregation and distribution for MVAS platforms 2003 – Entered Overseas 2014 – Got listed on BSE and 1987 - Home Video 2009 - Commenced markets for distribution NSE Distribution started distributing content over New Media platforms like YouTube 2016 – Crossed 1 billion views 2005 – Commenced 1993 - Broadcast Syndication on our flagship YouTube acquiring of perpetual rights 2011 - Achieved a total of started channel 600 perpetual right titles 4

EXPERIENCED LEADERSHIP Buddhichand Maroo - Raman Maroo - Atul Maru - Promoter Hiren Gada - Whole Jai Maroo - Non Chairman Promoter, MD Joint MD Time Director & CFO Executive Director Mr. Buddhichand Maroo is Mr. Raman Maroo is the co- Mr. Atul Maroo, has around Mr. Hiren Gada has Mr. Jai Maroo has the co-founder of the founder of the group and 36 years of experience in the approximately 20 years of approximately 13 years of has an experience of media and entertainment company and associated work experience, out of experience in the Media approximately 42 years, out industry. He has managed since 1962. He started the which, he has been and Entertainment space. of which he has spent the transition of the business with a book library associated with the Media He holds a Masters around 33 years in Media company from VHS days to in 1962 and gradually and Entertainment Industry Degree in Computer and Entertainment Industry. today‟s multi -platform transformed it into a well- for around 13 years. He has Science and Engineering He has been instrumental in operations. He has been diversified corporate in the played an active role in the the Group„s expansion into actively involved in the from Pennsylvania State Media and Entertainment television rights syndication operations of the Company transformation of Shemaroo University, U.S.A and a Sector. He has an as well as transformation of and has spearheaded from a family-run business to Graduate Degree in experience of Shemaroo into an various initiatives including a professionally driven Computer Engineering established filmed the home video division of approximately 54 years, of business in terms of systems from the University of entertainment content our Company. which has been associated and processes, best industry Mumbai. He is in charge house. He has remained the with Media and practices, etc. He handles of expanding Shemaroo‟s driving force in the Entertainment Industry for the Strategy and Finance reach on digital company, taking it into new around 33 years. functions in the company. distribution platforms such directions. as Mobile, Internet, OTT and so on. 5

INDEPENDENT DIRECTORS Dr. (CA) Reeta Bharat Gnanesh Gala - Vasanji Mamania - Shashidhar Sinha - Kirit Gala , Shah - Independent Independent Director Independent Director Independent Director Independent Director Director Dr. (CA) Reeta Bharat Shah is an Mr. Kirit Gala is an Mr. Gnanesh Gala is an Mr. Vasanji Mamania is an Mr. Shashidhar Sinha is an independent Women independent Director on independent Director on independent Director on the independent Director on the the Board of the Company. Director on the board of our the board of the Board of the Company, has Board of the Company. He is a He has completed his MBA Company, has over 28 years Company, has around 33 around 54 years of B.Tech from IIT Kanpur and post and Mechanical of experience in the field of years of experience in the experience in various graduate from IIM Bangalore. Engineering from Mumbai education and administration in educational publishing industrial sectors including Has 31 years of experience in University and has also various capacities. Dr. (CA) industry. He was the Film Processing, Civil media and advertising. He is completed his doctoral Reeta is a Ph.D. from IIT Bombay, President (Finance) of Constructions, Heavy presently the CEO of Lodestar research in marketing at a member of Institute of Navneet Publications Engineering and Non-ferrous UM India. Involved and drives Tennessee, U.S.A. He has Chartered Accountants around 26 years of business (India) Limited for more Metals. He was the Co- key industry bodies like the of India, Masters in Philosophy, experience. He is the than 21 years and has now Founder of Adlabs. Mr. Advertising Standards Council Masters in Commerce, MBA Managing Director of Gala been appointed as the Mamania has handled of India, AAAI‟s – Indian (HRM), Bachelors of Law and Precision Engineering Managing Director of the responsibilities ranging from Broadcasting Federation joint Private Limited. As a true Bachelors of Commerce (Hons.). said company. operations to financial body on industry practices, strategist he is better known She is presently the Head of planning and engineering Audit Bureau of Circulation as a “Marketing wizard”. Department (Accountancy) inputs in design and and the Joint Industry Body set at SIES College of Commerce & processes. up to monitor TV measurement. Economics. 6

SHEMAROO’S ROLE IN A MOVIE LIFECYCLE Shemaroo typically participates in the second and subsequent cycles of film monetization • These subsequent cycles of film monetization have been typically growing due to various factors like increasing • advertisement spends, digitization etc. There is a lower risk in these cycles due to visibility of performance of movie during first cycle of launch • Shemaroo decides on the cost of the content after it is confident of achieving the desired ROI at portfolio level • Shemaroo then distributes this content over different platforms like Broadcasting channels, New Media • platforms like YouTube and others. Theatrical, Television and overseas release generate ~90 -95% of the revenues in the first Revenue cycle of movie launch, where Shemaroo is not typically present. Shemaroo is present in the ancillary revenue streams like New Media, Home Video & In- Flight movie distribution, which contribute towards the remaining 5 - 10% of the revenues Second & Subsequent Cycles First Cycle 7

THE BUSINESS MODEL Complete Ownership Rights In-House Creation Limited Ownership Rights Perpetual Rights – Complete ownership Aggregate Rights - Rights limited by rights for distribution across all either period of usage, platforms, geographies, platforms, and perpetual geography or a combination thereof periods • Hindi Films • Regional Content Content Library • Music • Special Interest Content • New Media Focused Content • Other Content Monetization Platforms New Media Traditional Media Broadcast Syndication Home Video Others • Mobile • Satellite • VCD • Overseas • Internet • Terrestrial • DVD • In – Flight, Etc. • Other Platforms • Cable • Blue Ray • DTH 8

OUR CONTENT LIBRARY Content Library as of April 30th, 2016: Sr. No. Types of Content Perpetual Titles Aggregated Titles Total Number of Titles 1. Hindi films 423 1,394 1,817 2. Regional Titles 440 927 1,367 3. Special Interest content 49 199 248 TOTAL 912 2,520 3,432 Perpetual Titles Aggregated Titles Ajab Prem ki Mujhse Shaadi Amar Akbar Ghazab Kahani Jab we met Karogi Anari Dil Anthony Golmaal Sarfarosh Mughal-e-azam Bal Ganesh 2 Namak Halal Ishqiya 9

CONTENT SELECTION CRITERIA Shemaroo uses proprietary tools and considers various other factors for content valuation as shown below. The company purchases forward rights to movies and decides on the cost of the content after it is sure to achieve a desired return on investment at a portfolio level. Sr. No. Content Selection Criteria Sr. No. Content Selection Criteria Production Viewership 1. 5. House Track rating Record ROMANCE Box Office ACTION 2. 6. Genres Records COMEDY DRAMA 3. Cast 7. Reviews Comparable 4. Awards 8. Movie Valuation 10